Boca Raton firm to target China's middle-class consumers

South Florida entrepreneur Ankit Jain has been in business little more than three years. But in that time, he has overcome some big obstacles.

His first line of products flopped after eight months. A manufacturer in China shipped the wrong products to Jain's customers, forcing him to swallow the cost of those shipments.

But Jain's firm, Ankit, has cleared these hurdles and now supplies more than 5,000 retailers with headphones and iPhone cases, including Forever 21, Hot Topic and Wet Seal. Last year, it sold roughly 1 million units, and it expects to double sales this year.

Now, Jain says his Boca Raton-based company is ready to tackle its next challenge — manufacturing goods in the United States to sell in China.

"We want to bring more money into the U.S.," said Jain, 30, who holds a computer science degree from Florida Atlantic University.

China ranks as the third-largest importer of U.S. products, behind Canada and Mexico. It bought roughly $109 billion worth of goods last year, which is triple what it bought in 2003, according to a recent report by the US-China Business Council.

Florida companies sold about $1 billion in goods directly to China last year, mostly scrap metal, transportation equipment and chemicals. That is almost double what companies in the state exported in 2003, the council said.

"There is a lot of hunger for American goods, and the middle class is growing," said international business consultant Rosemary Coates.

Jain hopes to capitalize on this demand by launching a new premium line of electronic accessories that will be sold in China. This was his original goal when he launched his company in 2008 after he couldn't find a pair of headphones that had both a "cool design and good sound."

"I said, 'Screw it. I'll make my own,'" said Jain, who used a trade council in Hong Kong to establish a relationship with a manufacturer in China.

But his company's first line of $50 headphones flopped, and Jain was forced to scale back to selling cheaper headphones for under $10.

Sales began to steadily increase but took a small hit, said Jain, when a manufacturer in China filled a rush order with products that were not his. The company was forced to buy back that shipment from its upset customers, and Jain subsequently hired an employee in China to focus on quality control.

"We have learned from our experiences," he said. "We have more staff and better processes."

With his company now profitable, Jain now wants to flip the script and manufacture his products in the U.S. to sell in China. Once a manufacturer has been found, he plans to attend trade shows to showcase his product and to find someone who can help market his goods in China.

Coates sees potential in Jain — if the entrepreneur can build the right network in China.

"It's all based on relationships," said Coates, who is the president of Blue Silk Consulting and a veteran of doing business in China. "You can't just come in there [solo] and try to sell your goods."

One of Jain's customers, Veena Yadav of Coconut Creek, believes the entrepreneur definitely has the skills needed to navigate the Chinese marketplace. Yadav briefly hired him 10 years ago for a part-time retail position.

She and her husband currently own three gas station across South Florida and were one of the first buyers of the cheaper Ankit headphones. They later helped promote the product to other gas station franchise owners.

"Jain is a great salesperson," said Yadav. "He has that gift, and he has applied it in the right direction."

She also believes that Jain will succeed in selling his products in China because the entrepreneur is not afraid to ask for advice.

"Jain has the vision. … But he also knows there is always room to learn more," she said.